Clean Coal Power Operations Coal-to-Liquids Plant

On June 26, 2008, the Kentucky Economic Development Finance Authority gave preliminary approval for financial incentives worth $550 million to be awarded to Clean Coal Power Operations of Louisville, KY, for the construction of a $7.6 billion coal-to-liquids plant in Paducah, KY. The plant would produce 40,000 barrels of synfuels per day from coal, as well as a maximum of 300 MW electricity. The company has not yet finalized its decision to site the plant in Paducah, but CEO Terry Black has announced that he is impressed with the cooperation of state and local officials. A "major asset" of the site is its 2-mile-deep aquifer, in which carbon could hypothetically be sequestered and waste material could be deposited.

The company hopes to begin design within a few months, and hopes to begin construction by the end of 2008. Engineering and design work must be completed before permitting can proceed. Black has said that the company has commitments for most of the financing, but that additional negotiations are necessary.

Little information is publicly available on Clean Coal Power Operations, the project's sponsor. According to the Paducah Sun, the company previously operated under the name Clean Coal Power Resources, which had previously proposed to build the same project at two sites in Illinois. The company's CEO, Terry Black, is apparently an attorney at the southern Illinois law firm of Campbell, Black, Carnine, Hedin, Ballard & McDonald; Black has previously represented a wide variety of coal industry clients - including Peabody Energy, CONSOL Energy, Foundation Coal, and the International Coal Group.

Project Details
Sponsor: Clean Coal Power Operations Location: Paducah, KY Size: 40,000 bbl/day synfuels plus 300 MW electricity Type: Coal-to-liquids Projected in service: 2013 Status: Early development

Financing
On June 26, 2008, the Kentucky Economic Development Finance Authority gave preliminary approval for financial incentives worth $550 million to be awarded to Clean Coal Power Operations for the construction of the plant. Other financing has not yet been announced.

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